Foreign direct investment rose to $2.99 billion in the first quarter of 2007 from $2.6 billion in the same period last year, National Investment Coordinating Board (BKPM) chairman Muhammad Lutfi said on Tuesday (10/4/07).
Foreign direct investment approvals rose to $14.13 billion in the January-March period from $2.36 billion in the same period last year, he said, according to Reuters.
Meanwhile, realized domestic investment rose 60.56% to Rp13.68 trillion from Rp8.52 trillion a year ago while domestic investment approvals jumped to Rp77.15 trillion from Rp16.1 trillion in the same quarter last year.
Lutfi claimed that the pick up in both actual and proposed investments was due to the passage of a new investment law in the quarter, which includes the condition that both domestic and foreign direct investment "will be treated equally" in terms of rights, obligations and facilities, XFN-Asia reported.
Data from the investment board showed that for actual FDI projects, the biggest investment in the first quarter by PT Trans-Pacific Petrochemical in an aromatic project was worth $1.31 billion.
Major realized domestic investments included Rp3.78 trillion in a pulp industry project by PT Lontar Papyrus Pulp & Paper; and a ferronickel project worth Rp2.77 trillion by PT Antam.
Among the major FDI projects approved in the quarter was a new oil and gas refinery worth $4.44 billion to be built in Batam by PT Kilang Minyak Intan Nusantara Tanjung Sau. A power project worth Rp1.745 trillion owned by PT Bosowa Energi was among the major domestic projects approved.
Last year, actual foreign direct investment fell to $5.98 billion from $8.91 billion in 2005, although FDI approvals were up to $15.62 billion from $13.58 billion.